News in end use

According to the latest National Association of Home Builders’ (NAHB) Home Building Geography Index (HBGI), the trend that started in Q2 2020, in response to COVID-19 pandemic, of single-famil home building shifting to lower-density and low-cost markets continued unabated through Q1 2021. The suburban shift, however, has been even more pronounced in the multifamily sector, which is experiencing growth in 2021 after a slight decline in 2020.

A closer examination of The U.S. Bureau of Labor Statistics (BLS) Job Opening and Labor Turnover Survey (JOLTS) for April 2021, with additional analysis provided by the National Association of Home Builders (NAHB), reveals that the count of open construction jobs increased in April to 357,000 unfilled positions.

According to data from the Mortgage Bankers Association’s (MBA) Weekly Mortgage Application Survey, for the week ending June 24, 2021, the Market Composite Index — a measure of mortgage loan application volume — decreased by 3.1% percent on a seasonally adjusted basis from one week earlier. This week’s results include an adjustment for the Memorial Day holiday.

The National Federation of Independent Business (NFIB), reported today (6-8-21) that the NFIB Small Business Optimism Index fell -.02 points in May to a reading of 99.6. In May, there was a slight pause in the recovery of small business optimism after steadily improving from January through April 2021. In May a record-high number of business owners (48%) reported unfilled job openings.

The latest Mortgage Banker Association’s (MBA) Forbearance and Call Survey reports that the total number of loans now in forbearance decreased by 2 basis points from 4.18% of servicers’ portfolio volume in the prior week to 4.16% as of May 30, 2021. According to MBA’s estimate, 2.1 million homeowners are in forbearance plans.

The U.S. Bureau of Labor Statistics (BLS) today (6-8-21) reported its Job Opening and Labor Turnover Survey (JOLTS) for April 2021. According to the JOLTS report, as of the last business day in April, the number and rate of job openings reached a series high of 9.3 million (+998,000) or +6.0%. Hires were little changed at 6.1 million or +4.2%.

Redfin, the Seattle-based technology-powered real estate brokerage, is reporting that in the 4-weeks ending May 30, 2021, both pending sales asking prices began to decline or flatten. Redfin noted that some of the key takeaways for the time period could be potential signs that the housing market might be cooling down.

According to the latest Fannie Mae Home Purchase Sentiment Index® (HPSI), only 35% of consumers believe now is a good time to buy a home. The HPSI increased by 1.0 points in May to a reading of 80.0. Four of the six HPSI’s components increased month-over-month, most notably the components related to personal finance, as consumers reported a much greater sense of job security and improved household income compared to the same time last year.

A deeper dive into the U.S. Bureau of Labor Statistics (BLS) total nonfarm payroll employment report for May, with an emphasis on the construction sector, reveals that total nonfarm payroll increased by 559,000 and the unemployment rate declined by -0.3 point to 5.8% percent. However, employment in the overall construction sector declined by -20,000 in May, following a revised decrease of 5,000 jobs in April.

The U.S. Bureau of Labor Statistics (BLS) is reporting that total nonfarm payroll employment increased by 559,000 in May, following a disappointing increase of 278,999 in April and a surge in March of 785,000. In May, nonfarm payroll employment is down by 7.6 million, or -5.0% from its pre-pandemic level in February 2020.